In the short run,when a firm produces zero output,variable cost equals
A)Zero.
B)Total cost.
C)Fixed cost.
D)Marginal cost.

Question

Quizplus · Accepted Answer

Variable costs change with the level of output. When a firm produces zero output, its variable costs are zero because these costs are incurred only when there is production. Fixed costs, on the other hand, are incurred regardless of the level of output.

In the Short Run,when a Firm Produces Zero Output,variable Cost